Politics of Change

Politics of Change

Can politics be driven by reason? Can policies be driven by reason
alone? The politics of change is not easy to disentangle, particularly
in the Indian context. It is not unreasonable to expect that the primary
objective of a politician is to remain in office through successful
re-elections. The pursuit of sensible policies is in the belief that
these measures would help his re-election. The preferred policy matrix
can be greatly felicitated by the academic community. Indeed academic
research invariably brings out policy options and a menu of change.
Beyond this in garnering a constituency for change, the support of the
academic community is invaluable. The credibility of policies which have
academic underpinnings can make both academics and politicians natural
allies. Nonetheless, in actual life, cross-fertilization between
academia and politics is an exception rather than the norm. So what are
some of the policy choices which the cross-pollination of ideas can be
beneficial both to society and to politicians? These ideas are largely
in the area of economic and social policies.

Growth vs distributive justice,
or the pursuit of relative and absolute gains in income – is rising
inequality acceptable if those at the bottom end are also getting
richer? Is it socially sustainable? Moreover, are the steps often taken
to promote inclusive growth also conducive to high growth? People have
differing ideas of what it takes to achieve growth; growth occurs at
different paces for segmented groups in different places and policy
choices mediate this pattern and this sequence. Obviously there are
win-win situations such as improving infrastructure, which not only
opens up economic opportunities for a broader swathe of the population,
but also lowers costs of business and improves competitiveness,
contributing to general growth. But what about redistribution? This is a
debate that is not unique to India.

Growth vs Populism.
The contradictions of managing a right balance between the objectives
of growth and the compulsion of populism require political choices and a
judgment. Subsidies, for example, represent a sizeable item of the
government’s non- plan revenue expenditure. The arguments both in favour
of and against subsidy are equally strong. No doubt a country like
India needs subsidies on merit goods due to various reasons like poor
social safety net arrangements. Providing minimum consumption
entitlement to the poor by subsidizing items of necessary consumption
have multiplier welfare gains. But, the benefits can be maximized only
when the subsidies are transparent, well targeted, and designed for
effective implementation without any leakages. Attempting to reform the
subsidy regime requires convergence among political parties in the
interest of fiscal prudence. The right blend of politics with
development priorities have gainful multipliers.

Growth vs Environment.
The trade-off here is sharper in the short run than the long run, but
we live in the short run. Whether to build a coal-fired plant or a
nuclear plant or emphasize demand-side reductions does imply different
cost and financing profiles that do have opportunity costs in terms of
funds available for social services and other infrastructure.

Academics are invariably engaged with the development issues in the
broader sense of the term. Long term societal good as well as fostering
innovations improving the frontiers of knowledge pose difficult choices
both for harnessing and optimal resource utilization. Research and
scientific studies have an abiding value of their own. However,
governance which engages politicians can never be divorced from its end
objective namely improved social welfare. The relationship between
governance and development is complex and often episodic. The
ingredients of good governance have no fixed paradigm except by
experience we know that it results in faster growth process.
Nonetheless, issues of equity and inclusive growth alter our
perspectives both on what is good governance and what is a desirable
pattern of growth. Both academics and politicians are an integral part
of the social dynamics of change.